5 Problem A 5 The folowing data refer to the production center of Sipp-Fizz, a soft drink botter 3 Work in process inventory, August 1 consisted of 3600 units and costs of: (The beginning inventory was 90% complete for materials and 80% complete for conversion costs ) 0 Direct materials $16,000 1 Direct labor $4,050 2 Applied Overhead $13,060 3 4 Units started in August 14,580 units 5 5 Costs incurred during August: 7 Direct materials $40,900 Direct labor $51,590 Applied Overhead $74,690 3 The ending Work in Process Inventory on August 31 consisted of 5620 units (80% complete for materials and 70% complete for conversion costs). 2. Remember, conversion costs refer to direct labor and overhead. Required: a. Prepare the journal entries to record the costs incurred in August (Hint: we do not enter entries for beginning work in process because these costs have already been recorded). a. Prepare the joumal entries to record the costs incurred in August (Hint we do not enter entries for beginning work in process because these costs have already been recorded). b. Show the physical flow of units. c. Calculate the equivalent units of production for materials, direct labor, and overhead costs using the weighted average method d. Calculate the cost per unit under the weighted average method. e. Assign costs to units completed and transferred and to units remaining in ending work in process. SHOW AND LABEL ALL CALCULATIONS. a. Journal entries for costs incurred in August yes Hint? Debit Same journal entries from Chap Credit Record direct materials used in August Work in Process Inventory Raw Materials Inventory $ 16,000 $ 16.000 Record direct lobor used in August Work in Process Inventory Factory Payroll $ 4,050 $ 4,050 Record overhead applied in August Work in Process Inventory 10 NA Credit 16 000 $ 16,000 4,050 $ 5 4,050 Debit 36 Record direct materials used in August 37 Work in Process hventory 5 38 Raw Materials Inventory 19 40 Record direct labar used in August 41 Work in Process Inventory 5 42 Factory Payroll 43 44 Record overhead applied in August 45 Work in Process Inventory $ 46 Overhead 47 18 49 D. Show the Physical Flow of Units for Unit reconciliation) 50 51 Physical Flow of Units: 3600 Lyes Hint? 2 14,580 53 54 Total Units to Account for 18.100 Units Accounted for 13,050 $ 13,050 Beginning Work in Process Units Units Started Units Transtored But Ending MPU 18,100 e Hint? Toualunit to accounti-unting WIP 5620 12.560 0 Calculate Equivalent Units (round to nearest unit. if necessary) -7 3 Equivalent Units Direct Materials Direct Labor 9 Units Completed this period 12,560 12 560 0 Units in Ending Work in Process woheading only enfor foil below 2 Drect Materials Conversion Overhead 12.560 W Hint? Brent completed in Augustrom above 100% plote Hint F59 12560 12,560 Hint? D Hint? Hint? Hint? Hint? Hint? Hint? HOIVIO! 8 D 59 Units Completed this period 12,560 12,560 50 61 Units in Ending Work in Process subheading only enter detail below 62 Direct Materials 63 Conversion 64 Total Equivalent Units 65 Sell check 66 d. Cost per Equiv Unit of Production 67. Beg Work in process inv costs 68 Costs added this period 69 Total Costs 70 Total Equivalent Units 7 Cost per Equivalent Unt #DIV/0! #DIV/0! 72 Self check 73 e. Cost Assignment and Reconciliation (round to nearest dollar, if necessary) 74 75 Costs transferred out (cost of goods manufactured) 176 Direct materials Direct labor 78 Overhead 79 Total costs transferred out 80 Sell check 811|| Costs of ending work in process 82 Direct materials 83 Direct labor BA Overhead 85 Total costs remaining in ending work in process Homework Settings Ready